Why is Bitcoin so hard to mine?
Assalamu Alaikum
How are you? By Allah's grace, I'm doing very well. Today, the topic I want to discuss why is bitcoin so hard to mine?
Satoshi Nakamoto created cryptocurrency so that people can exchange money from one place to another without a bank or institute. But by 2008, such an idea was too complex. Then a thought came to Satoshi Nakamoto's head, who will complete the transactions of Bitcoin? And how will the supply of bitcoins in the market come. Satoshi Nakamoto mainly selects miners to complete the transactions of bitcoins. The main job of miners is to use their computer power to verify Bitcoin transactions and secure the Bitcoins in their custody.
When Bitcoin was created, Satoshi Nakamoto was mining thousands of Bitcoins with his personal computer. The main reason for this is that there weren't that many miners on the Bitcoin network back then, and the 50 Bitcoins released per block were divided among a few. This is exactly why Satoshi Nakamoto was able to mine a million Bitcoins in a very short period of time. Then when it started to be discussed in various blocks, many people started mining Bitcoin on their personal computers. But no more than 50 bitcoins were released per block, and each of these 50 bitcoins was divided among the miners on the network. Because of this, the mining difficulty starts.
As more miners join the Bitcoin network, the mining difficulty increases, and the more powerful the Bitcoin network becomes. At present, mining is not very profitable due to the fact that many large mining farms are mining in large amounts and mining difficulty is increasing. But mining profitably depends on many things, such as power consumption and the miner you use, which mining machine you are using and how many kilowatts of power it consumes and what is its mining capacity? There are various mining calculation websites online, you can calculate your profit loss from there.
Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.
you have written a very good piece on this topic, I believe many people will benefit from this.
Thank you for how you have beautifully explained in a very clear and detailed manner why bitcoin has become very difficult to mine as against the first time Satoshi Nakamoto mined it for the first time in his personal computer.
Thank you
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Thank you